The Your Future, Your Super bill has now been passed in the Senate and will come into force on 1 July, 2021.
The bill was passed with amendments today and would include a performance test of super funds to ensure members were not stuck in underperforming funds.
Members would also be ‘stapled’ to a superannuation fund where one fund would stick with them for the duration of their working life which would prevent the creation of employees having multiple accounts.
Finally, there would be increased accountability of how superannuation funds used their members’ money.
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Welcome to the party.
This is a good thing for working Australians. Stops stupid cases of multiple accounts with the same industry fund eroding small balances with high fixed fees. We had a labourer come in to our office wanting to tidy up his super here in QLD. He’d been working through a Labour hire company and places and many job sites over 3/4 years. He had 16 super funds, 6 of them with the same provider, 4 under different employer schemes and 2 personal accounts with the same company. Not entirely the fault of payroll, but checks and balances based on TFN’s should have ironed a lot of it out. Geez he had some life cover though!
I don't understand how they came up with a 2 year performance test, any of them. Such a short time frame to assess long term strategies. And then no new member contributions if not met, so enforced liquidity issues on funds with ageing demographics - I think this could end in systematic issues. And, will end up with less diversification as fund managers will all hug indexes even tighter to remove underperformance risk.
More bs oversight by big brother - when are we going to stop citizens form bloody-well taking responsibility for themselves, FFS!
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